Analyzing Yunji (NASDAQ:YJ) & PDD (NASDAQ:PDD)

PDD (NASDAQ:PDD) and Yunji (NASDAQ:YJ) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Institutional & Insider Ownership

39.8% of PDD shares are held by institutional investors. 3.7% of PDD shares are held by company insiders. Comparatively, 45.3% of Yunji shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares PDD and Yunji’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDD	21.86%	24.32%	15.80%
Yunji	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for PDD and Yunji, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	1	8	7	0	2.38
Yunji	1	0	0	0	1.00

PDD presently has a consensus target price of $124.64, suggesting a potential upside of 62.83%. Given PDD’s stronger consensus rating and higher possible upside, equities analysts clearly believe PDD is more favorable than Yunji.

Volatility & Risk

PDD has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Yunji has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Valuation and Earnings

This table compares PDD and Yunji”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$61.75 billion	1.76	$13.99 billion	$9.26	8.27
Yunji	$45.33 million	0.16	-$19.06 million	($3.37)	-0.44

PDD has higher revenue and earnings than Yunji. Yunji is trading at a lower price-to-earnings ratio than PDD, indicating that it is currently the more affordable of the two stocks.

Summary

PDD beats Yunji on 12 of the 14 factors compared between the two stocks.

About PDD

PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.